DoD's $24.8M Hurricane Harvey Recovery Contract with CH2M HILL Awarded via Full and Open Competition
Contract Overview
Contract Amount: $24,801,485 ($24.8M)
Contractor: CH2M Hill Constructors, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-08-28
End Date: 2021-07-15
Contract Duration: 1,417 days
Daily Burn Rate: $17.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Construction
Official Description: IGF::OT::IGF HURRICANE HARVEY RECOVERY
Place of Performance
Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $24.8 million to CH2M HILL CONSTRUCTORS, INC. for work described as: IGF::OT::IGF HURRICANE HARVEY RECOVERY Key points: 1. Significant contract awarded for disaster recovery efforts in Texas. 2. CH2M HILL CONSTRUCTORS, INC. is the primary contractor. 3. The contract was awarded under full and open competition. 4. The contract duration was 1417 days, ending in July 2021.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed closely. Benchmarking against similar construction contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Award Fee structure may still allow for cost overruns.
Taxpayer Impact: Taxpayer funds were used for disaster recovery, with the final cost reflecting the complexity and duration of the recovery effort.
Public Impact
Directly addresses critical infrastructure needs post-Hurricane Harvey. Supports economic recovery in Texas by rebuilding damaged facilities. Demonstrates government's role in disaster response and resilience.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type can incentivize higher spending.
- Long contract duration may indicate unforeseen complexities or scope creep.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical national need for disaster recovery.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a vital area for infrastructure development and repair. Spending in this sector can fluctuate significantly based on economic conditions and disaster events.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring adherence to contract terms and cost controls.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Award Fee structure
- Long contract duration (1417 days)
- Potential for cost overruns
- Lack of detailed cost performance data
Tags
commercial-and-institutional-building-co, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to CH2M HILL CONSTRUCTORS, INC.. IGF::OT::IGF HURRICANE HARVEY RECOVERY
Who is the contractor on this award?
The obligated recipient is CH2M HILL CONSTRUCTORS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $24.8 million.
What is the period of performance?
Start: 2017-08-28. End: 2021-07-15.
What was the final cost performance relative to initial estimates or benchmarks for similar large-scale construction recovery projects?
Without detailed cost breakdowns and comparison data for similar post-disaster construction projects, it is challenging to definitively assess the final cost performance. The Cost Plus Award Fee structure allows for flexibility but requires diligent oversight to ensure value for money and prevent excessive costs.
What were the primary risks associated with this long-duration recovery contract, and how were they mitigated?
Key risks likely included unforeseen site conditions, material cost fluctuations, labor availability, and potential scope changes due to the evolving nature of disaster recovery. Mitigation strategies would involve robust project management, contingency planning, and clear communication channels between the contractor and the government.
How effectively did this contract contribute to the overall Hurricane Harvey recovery goals and the restoration of critical facilities?
The contract's effectiveness is measured by its contribution to restoring damaged facilities and supporting the broader recovery mission. The long duration suggests a significant scope of work, implying a substantial impact on rebuilding efforts, though specific outcomes require further detailed reporting.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc.
Address: 9189 S JAMAICA ST, ENGLEWOOD, CO, 80112
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,801,485
Exercised Options: $24,801,485
Current Obligation: $24,801,485
Subaward Activity
Number of Subawards: 68
Total Subaward Amount: $17,568,492
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6247013D6019
IDV Type: IDC
Timeline
Start Date: 2017-08-28
Current End Date: 2021-07-15
Potential End Date: 2021-07-15 00:00:00
Last Modified: 2025-05-08
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